Warner Bros Discovery splits - not everything has been thought through...
It is finally happening - after what feels like a year or so of speculation, Warner Bros Discovery is splitting the company.
Current chief David Zaslav is off to manage the Streaming & Studios side of the business, while current CFO Gunnar Wiedenfels will handle the Global Networks.
Or another way of looking at it: Zas is off to manage all the WBD assets people are excited about (HBO, the movie studios, the extensive library, and DC), while The Wied (nobody calls him that, but lets make that take off) will look after all the linear assets, Discovery, and Discovery+.
I’d suggest that because it’s The Wied, a finance guy, looking after the declining assets, he’s really only there long enough to drive down more of the debt and sell it all off for parts.
And that’s fine… I have no love lost for what are increasingly becoming zombie channels with some sports mixed in. But, the company is bundling CNN into that mix to prop up the value (and possibly detoxify M&A activity around Zas’ streaming business from a vengeful Trump administration). I do have a great deal of affection for the potential of CNN.
An interesting comment from finance reporter/opinion guy Bill Cohan on The Powers That Be podcast today was that the extensive debt will largely be left with the linear TV company - an expected $27b. that would leave a far leaner $7b with the streaming company. Cohan goes on to talk about a lot of that $27b debt actually serving as an asset for the company (to be sold off.. Finance is wild).
In the media release, WBD mention that the Global Networks company will own a 20% stake in the Streaming and Studios business. That will then be sold off, reducing some of the debt load.
It’s all fairly elegant and everyone comes out of it looking like winners. Except, uh, at the end of the day, WBD’s stock value was down. Not everyone is so enthused, it seems.
Anyway - two key thoughts I had from this fairly expected news:
What will the two split company’s be branded as? I’m going with the obvious: Warner Bros and Discovery. I feel pretty confident with that…
Did anyone think through the (temporary) naming of the Streaming and Studios business? In the way these things happen, staff will be calling it SS before too long… Good thing the German-born Gunnar Wiedenfels isn’t running that one…
Read more: Mediaweek
The rise of vertical dramas…?
Indiewire today has an article about the apparent rise of vertical drama. It catches your attention with this par:
For the uninitiated, vertical dramas are full-length features shot in 9:16, designed for mobile-only viewing on platforms like ReelShort and MyDrama. China launched the format in 2020, filling the theatrical void of the Covid pandemic; in 2024 it generated nearly $7 billion in annual revenue, outperforming the country’s theatrical box office.
I have no doubt that there is a rise in vertical drama video. But I’d caution people to understand that this seems more geared towards the asian market than western viewers. Of course, we may start seeing trends move in this direction too, but I wouldn’t be seeing this as a Hollywood-killer just yet.
It also sounds like there is a quality issue, which may limit uptake.
The number of vertical dramas produced lie in the thousands, generating billions of views. And they all have one thing in common: By any traditional measure, these are not good movies.
From the lighting to the dialogue to the character names that appear on screen next to the burned-in, same-language subtitles, every element of a vertical drama is digitally calibrated to be thuddingly obvious. Their titles and thumbnail images resemble Harlequin Novels in concentrate, with titles like “Surrender to My Professor,” “Royal Heir Breaks My Heart in a Warzone,” and “The Alpha King and His Virgin Bride.”
News Desk
Titus Welliver will star opposite JK Simmons in MGM+ drama The Westies. Read: Deadline
Chloe Sevigny has joined Peacock series The Five-Star Weekend opposite Jennifer Garner and Regina Hall. Read: thefutoncritic
Expect a lot of CGI, for some reason, in The Big Bang Theory spin-off Stuart Fails To Save The Universe. I already sense Stuart is on the verge of cancellation and we are some time out from seeing this thing. Read: Variety
Ahead of the still-to-be-approved/bought-off merger, Paramount Global said Monday that its chief financial officer Naveen Chopra is departing “to pursue other opportunities.” A brutal phrase in a media release. Read: Deadline
Roku is trying out a new look. Read: The Verge
Disney agreed to pay Comcast an additional $439 million to the $8.6 billion it already paid for Comcast’s 33% stake in the business. Some people are never happy, with Comcast seeking another $5 billion. I totally get that - it’s a similar asking price for the ABW newsletter. Get the hint, R*pert M**doch… I won’t take a penny less. Read: NYT
Dawsons Creek creator Kevin Williamson on how The Waterfront, his new show for Netflix, kept him from retirement. Read: TV Insider
RIP Fredrick Forsyth - the author, who has seen many of his books adapted (recently saw The Day of The Jackal adapted into a Peacock series) has died at age 86. Read: THR
Katherine Parkinson from The IT Crowd is along nine actors added to the cast of HBO’s upcoming Harry Potter show. Read: THR
Trailer Park
Eddie Murphy, Pete Davidson, and Keke Palmer star in new Prime Video film The Pickup on August 6.
Marvel’s Ironheart debuts June 24 on Disney+.
That’s the newsletter for today.
Consider becoming a paid supporter of Always Be Watching.
Connect with Dan on Bluesky. Connect with Dan on Letterboxd. Connect with Dan on Linkedin. Email Dan @ alwaysbewatching.com or just reply to this email.
